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ETF Specialist

More Money Flows Into Stock ETFs So Far This Year Than in All of 2020

Rich stock valuations don't deter exchange-traded fund investors in April.

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Stocks continued to roll in April 2021. The Morningstar Global Markets Index--a broad gauge of global equities--gained 4.33% last month. After a lethargic January, three consecutive positive months have bumped the index's year-to-date return to 9.41%. Bonds rebounded in April as interest rates stabilized. The Morningstar US Core Bond Index added 0.82%, its first monthly gain in 2021.

Stock exchange-traded funds needed only four months in 2021 to eclipse their inflows from all of 2020. After adding $53.2 billion in April, they have collected a total of $253.5 billion in flows so far this year. Stock ETFs absorbed $231.8 billion in all of 2020. Bond ETFs have taken a back seat after dominating inflows for most of 2020, raking in $69.0 billion over the first four months of this year.

Ryan Jackson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.